Finding Text
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.224 and 93.527; 93.526 Federal Award Identification Number: H8FCS41001-01; C8ECS44566-01 Award Periods: April 1, 2021 ? March 31, 2023; September 15, 2021 ? September 14, 2024, respectively Type of Finding: Significant deficiency in internal control over compliance Criteria: ? 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and ?? 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. Condition: The Center did not maintain proper documentation for determining the rationale of the procurement methodology that it applied. Questioned Costs: None. Context: Two (2) of seven (7) vendors tested. Cause: The Center did not create and maintain documentation for its rationale related to choosing the noncompetitive procurement method. Effect: The Center may inadvertently select vendors without regard to fair competition and cost analysis. Repeat Finding: No. Recommendation: Management should adhere to the Center?s existing procurement policy and implement a system of processes and internal controls to ensure that the appropriate level of documentation is maintained based on the procurement methodology selected for a transaction of contract. Views of Responsible Officials: There is no disagreement with the audit finding.